Loco London Gold Fraud in Hong Kong
In receent years, Loco London Grold Fraud case happens often in Hong Kong. Many potential investors are induced by mispresentation and false promise of high return to invest in so-call Loco London Gold or other precious metal, which later proves to be frauds. Victims locate all over the world, the majority of whom are overseas Chinese in Australian, American, Canada, Singapore, etc. When Loco London Gold fraud happen, how can a victim do to recovcer his loss?This article focuses on Loco London Gold (“LLG”) fraud and will provide some advice.
How does the Loco London Gold fraudster operate the scam?
Fraud using LLG investment as a cloak has been widely reported in newspaper. According to Wikipedia and relevant reports about LLG fraud, its operation involves :-
1. Using attractive lady to find potential investors through social apps and then induce the potential investors to open a LLG trading account in unscrupulous financial company;
2. Making promise of high return to induce potential investors to deposit funds into financial company for the purpose of so called deposit for LLG investment;
3. The trading software (app) allows the investor to enquire the “trading account balance” and “trading records”;
4. Induce the investors to sign written authorization for trading and hand over investment account login details;
5. “Trade” very frequently on behalf of investor which leads to total / substantial loss; and
6. Informing the investors that the total / substantial part of the account balance has been lost and unable to get it back.
Loco London Gold Scam – Legal Basis for a Civil Litigation
1. Had and Receiving Client Victim’s fund: Depending on the circumstances, the financial company may need to provide evidence to prove whether it really uses the fund deposited by the investor to invest in LLG.
2. Misrepresentaiton: Company using fraudulent statement to induce clients to invest and causing the client to suffer loss should compensate such loss to the clients;
3. Unauthorized Trading: The said agents of the Company operate the client’s account to trade in and out without or agains the client’s instruciton that causes client to suffer loss. In such in circustances the company should be responsible for compensation;
4. Some cases may involve criminal offence of fraud.
Loco London Gold Fraud: The Victim’s Legal Solution
For LLG Fraud victims, depending on the actual circumstances, they can consider the following legal measures :-
1. Report the case to Hong Kong Police Force; and
2. Initiate civil proceedings in Hong Kong Court.
For LLG Fraud case, you are welcome to contact our lawyer of litigation team for a consultion.